Question

Franklin has $2,500 in a savings account that pays interest at the rate of 4% annually. How much interest will he earn after one year?

Answer 1

So first of all we turn the percent into a decimal. Do you know how to do this?

Answer 2

yes ...that would be 0.04 right

Answer 3

Right. So now all you have to do is multiply the principle ($2,500) by the time (one year) by the rate (0.04)

Answer 4

when i multiply by one year do i use 1 or 365.....????

Answer 5

Use 1

Answer 6

2500 * 1 * 0.04..... = 100.... is this right

Answer 7

Yes good job :)